The Impact of IFRS 9 on the Value Relevance of Accounting Information

Fitim Raci and Edona Perjuci
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Fitim Raci: Faculty of Economics, Banks, Finance and Accounting, Universiry of Pristina
Edona Perjuci: Faculty of Economics, Banks, Finance and Accounting, Universiry of Pristina

Ekonomski pregled, 2025, vol. 76, issue 4, 301-314

Abstract: This study aims to investigate the impact of IFRS 9 on the relevance of accounting information value, focusing on banks traded on share exchanges in Southeast Europe. The research examines how this transition has affected the market valuation of SEE banks, specifically analyzing changes in the importance of market value per share, book value per share, and earnings per share. Using Multiple Linear Regression Analysis (OLS), the study analyzes data from 47 commercial banks in eight SEE countries from 2015 to 2020. This period includes the stages before and after the implementation of IFRS 9, providing a comparative view of its impact. The findings show a significant change in the value relevance of accounting information after the adoption of IFRS 9. In particular, the study reveals a significant increase in the importance of Earning per Share in share valuation, highlighting a stronger market response to reported earnings. Additionally, the increasing importance of Book Value per Share suggests an increased investor reliance on book value with the new IFRS. This study contributes to the understanding of the consequences of IFRS 9 on financial reporting requirements in developing markets, offering insights for policymakers and academics aimed at improving financial transparency and investor confidence. However, the study’s scope is limited by its regional focus on Southeast Europe and its restriction to publicly traded banks, potentially limiting the generalizability of results to other sectors or regions.

Keywords: International Financial Reporting Standard 9 – Financial Instruments; Market value per share; Book value per share; Earning per share. (search for similar items in EconPapers)
JEL-codes: G15 G21 M41 M48 (search for similar items in EconPapers)
Date: 2025
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